877.1 -8.42 (-0.96%) Sell

Search for alternative investments is on for CENTURYTEX investors as it performed worse than the broader market

13 min read

CENTURY TEXTILES LTD trailed the broader market on Tuesday. It returned -0.96% to close at 877.1. It is currently trading -38% below it's 52 week high of 1418.4.

[Themes containing CENTURYTEX]

Buy-and-Hold investors in CENTURYTEX experienced a maximum drawdown of -7.65% over the last three months. It gained +19.28% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +3.87%.


CENTURYTEX has been underperforming the NIFTY-50 index in recent time, after having outperformed till 9 Jan, 2018. Over the last 3 years and 1 month, CENTURYTEX outperformed the NIFTY-50 index on 50% days. Which indicates that on days CENTURYTEX outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

CENTURYTEX was profitable on 57% days in the last three months. During this time, it delivered on average +0.3% per day. It delivered it's worst daily return of -5.67%, during this period, on Thursday, 6 Dec, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +12.89% to investors. This was followed by a bearish trend that started on 1 Jan, 2019 and ended on 3 Jan, 2019. This bearish trend lost -2.7% of investor capital.

On monthly basis, CENTURYTEX delivered losses in more months over the last year, than profits. CENTURYTEX delivered profits less regularly than NIFTY-50 index. CENTURYTEX was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -25.11% compared to -6.42% returned by NIFTY-50 index in Sep 2018. CENTURYTEX and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both CENTURYTEX and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The Stock Market is designed to transfer money from the Active to the Patient.
-- Warren Buffett

CENTURYTEX is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in CENTURYTEX's volatility from 29 Oct, 2018 to 16 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that CENTURYTEX has significant positive skewness in it's return distribution. This indicates that investors can expect CENTURYTEX to recover from drawdowns quickly. Which makes CENTURYTEX a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in CENTURYTEX derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

CENTURYTEX has more chance of extreme outcomes than the NIFTY-50 index. Therefore, CENTURYTEX must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than CENTURYTEX.

Based on your interest in CENTURYTEX you may find it interesting to know that RESPONIND has shown remarkable performance this year and deserves to be on every investors' watchlist.

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